There are several factors that can impact the time it takes for order messages and price data to move in between an electronic trading platform and a Financial Exchange’s matching engine. In electronic trading, the value of latency is relative: how fast you are to the market only matters in relation to how fast everyone else is to the market. Between the trader and the market is a plethora of electrics and fiber optics; the distance is measured in milli-, micro-, and nanoseconds. This paper gives an overview of how to optimize for low-latency trading.
ED&F Man Capital Markets Hosting & Infrastructure is a global financial brokerage business and the financial services division of ED&F Man.